Only 28 percent of private landlords are confident that letting property will remain financially viable over the next five years, new research from LegalforLandlords published on 16 October shows.
The survey found 40 percent plan to raise rents if they face higher taxes in the Autumn Budget, while 16 percent are considering leaving the private rented sector altogether if further financial pressure is added. Around three in five landlords said they felt pessimistic about the Budget on 28 October.
With 12 days to go until the Chancellor delivers his statement, the findings point to a direct link between tax decisions and near-term rent and supply pressure. Any added cost that cannot be absorbed is likely to be passed to tenants or prompt further sales in a market where listings remain tight.
Budget tax fears drive rent warning
Sim Sekhon, Group Chief Executive of LegalforLandlords, said confidence was low ahead of the fiscal event. “The message from landlords ahead of the Autumn Budget is clear: confidence is low, and further financial pressure could have consequences for both landlords and tenants,” he said. “Landlords are running businesses and making long-term investment decisions. If the cost of providing rental housing continues to rise, some will look to increase rents where they can, while others may decide that remaining in the sector is no longer financially viable.”
Chancellor John Healey is not expected to raise Capital Gains Tax significantly, despite earlier speculation that rates could be aligned with Income Tax. That expectation has done little to lift sentiment, with taxation and future profitability cited as the main weights on confidence.
When asked what would restore confidence, 30 percent of landlords favoured a cut in Income Tax on rental income, while 27 percent backed lower Capital Gains Tax. A further 25 percent said tax relief to support new supply would help increase the number of private rented homes.
Supply risk sharpens as exits loom
This follows Landlord Knowledge’s September report on NRLA warnings that 46 percent CGT talk could stall landlord sales, which found speculation alone was freezing decisions. The latest figures suggest that freeze is hardening into exit plans and rent-rise intentions as the Budget date firms up.
The tenure shift carries weight for availability. Chestertons data showing a quarter of London landlords re-let after an exit bid underlines how many sales attempts fail to remove stock for good, but a 16 percent potential exit rate at national level would still cut choice in areas where demand already outstrips listings. Record asking rents reported this month add to the pricing tension if costs rise further.
The survey was conducted among private landlords making portfolio decisions on refinancing, sales and rent setting. It measures stated intentions rather than completed transactions, so the 40 percent rent-rise figure signals pricing pressure rather than a confirmed market move. The sample covers independent owners rather than institutional build-to-rent operators, whose funding and tax position differs. For detail on the survey method and the compliance services the firm provides, see the LegalforLandlords site.
What this means for landlords
- If you are setting rents for winter relets: model a Budget-driven cost rise now and keep evidence for any increase, as challenges must meet the current legal tests.
- Watch for: the 28 October statement and any change to Income Tax treatment, Capital Gains Tax or reliefs that affect supply – decisions on sales or purchases are best held until the detail lands.
- Bottom line: with confidence at 28 percent, small cost shifts could move rents and listings fast – keep cash buffers and paperwork ready.
Editor’s view
Confidence at this level is a pricing signal, not just a mood reading. If four in 10 landlords act on a tax rise by lifting rents, tenants pay first and supply pays second. The Chancellor can argue about fairness on 28 October, but landlords will price what they see.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 16 October 2026
Sources: LegalforLandlords, HM Treasury
Related reading: NRLA warns 46% CGT talk could stall landlord sales
